Rivian’s Q3 Revenue Falls Short Amid Supply Chain Woes
The electric vehicle maker’s third-quarter results were marred by a supplier parts issue, leading to a wider-than-expected loss and revenue that missed the mark.
A Challenging Quarter
Rivian reported revenue of $874 million, falling short of the $980 million expected by Bloomberg consensus. This represents a significant drop from the $1.34 billion generated in the same period last year. The company’s adjusted loss per share was $0.99, exceeding the expected loss of $0.92. Furthermore, its adjusted EBITDA loss ballooned to $757 million, surpassing the anticipated $657.5 million.
Supply Chain Disruption Takes Its Toll
Last month, Rivian announced a production disruption due to a shortage of a shared component on the R1 and RCV platforms. The supply shortage, which began in Q3, has become increasingly acute in recent weeks. As a result, the company revised its full-year adjusted EBITDA guidance to a loss of $2.82 billion to $2.87 billion, a larger loss than previously forecast.
Maintaining Production Guidance
Despite the challenges, Rivian maintained its annual production guidance of between 47,000 and 49,000 vehicles, albeit lower than its initial expectation of 57,000. The company reaffirmed its annual delivery outlook of low-single-digit growth, expecting to deliver 50,500 to 52,000 vehicles.
A Glimmer of Hope
Rivian’s CEO, RJ Scaringe, expressed optimism about the future, citing progress on the Gen 2 R1 cost structure and the upcoming midsize SUV, R2, which is expected to drive growth. The company anticipates achieving a modest gross profit in the fourth quarter.
Cash Cushion Remains Strong
Rivian ended the quarter with a robust $7.85 billion in cash and equivalents, thanks in part to a joint venture deal with Volkswagen. The deal, announced in Q2, will see Volkswagen invest up to $5 billion in Rivian through 2026.
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